NEW ZEALAND CHEESE.

Taranaki Daily News, 30 August 1916, Page 3

NEW ZEALAND CHEESE.

. THE PRODUCERS' POSITION. A review of the. position relating to the rejection by eheese producers of the Imperial offer of Sd per lb for elieese for the armies was given at Auckland on Saturday by Mr. E. Pacey, managing director of the New Zealand Dairy Association. Mr. Pacey said he bad thought it highly desirable'that the deal should be completed, and he personally regretted that the negotiations had proved abortive. The producers offer to accept 8;d pel lb was made under the assumption that the total output would i;e required. Since that offer was made, the marketing conditions had entirely changed, and on the day on which the committee representing the producers met the Prime Minister, oft'era were freely made on behalf of English firms for factory outputs at over !>d per lb. Notwithstanding that, he believed the committee would have adhered willingly to the cfl'cr of 8J(l. Indeed, considering the special purpose of the purchase, and the fact that it freed New Zealand factories from transport risks, probably business might have been done at a price somewhat less. When, however, Mr. Massey submitted the Imperial Government's offer of Sd per lb, and that for only 8001) j tons, to arrive in England at the rate of 2001) tons monthly during January, February, March and April, it was outside the authorisation given to the committee by the factories, and did not leave .scope for negotiations. In reply to a question Mr. l'aeey said he preferred not to discuss the authorisations given to the committee. Further questioned, he said that he agreed that a sale which was not dependent upon the maintenance of adequate shipping was certainly worth while at lower rates than would prevail for ordinary business, but, he addad, th» difference in the offers was *-Oo givat. Shipping prospects for the coming season were approximately as good M they were last season, though possibly not quite as good, as some steamers were taking a longer route, and the calls for space from Australia would be larger. The outlook, however, was encouraging failing of course steamers being put out of action by the enemy or from other causes and failing the vessels being required for the transport of troops. Asked if the reduction of the Governmen requirements to 8000 tons instead of about SO,OOO tons originally .ndicated was due to the War Office having purchased in Canada, a s recently reported, Mr. Pacey replied that he did not know. He said he was disappointed at the curtailment of the order and at the request that delivery should be made during months which included the most advantageous for tho industry. Meanwhile, said Mr. Pacey, the outlook was encouraging, and subject to the maintenance of shipping facilities, cheese producers would certainly havfe a good season. Asked whether they would have \ a better season than butter producers, 1 Mr. Pacey replied that he could not say, as the butter market showed extraordinary prospers. He thought that both butter and eheese producers would have reason for gratification. An Auckland produce agent writes aa follows regarding the price of elieese: "In reference to the offer made by the New Zealand factories to the New Zealand Government at Bi|d net, f.0.b., if the factories in New Zealand sell at this price to the Imperial authorities they will lose over a quarter million sterling as compared with the price that my firm averaged for about (1000 tons of cheese last year on the English market. They averaged from fljtl to 9Jd net, f.o.b. It is just as well to let the New Zealand people and the farmers know what their cheese averaged last year, to show that the price offered to the Government is a verv low one**